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Hello Sir, I would like to get a confirmation from you is that the impairment loss reversed is higher of the IFRS 5 and IAS 36 which is not the cumulative amount under both standards?Thank you.
“A gain for any subsequent increase in FVLSC of an asset is recognised in the Pnl to the extent that it is not in excess of the cumulative impairment loss which has been recognised in accordance with IFRS 5 or previously in accordance with IAS 36”
I’m afraid I don’t understand your question at all. All that you need to know for the exam is that reversal of impairment losses can be recognised except for goodwill. Reversal will be recognised in the profit and loss account.
So if PPE goes down by 100 and in the next year goes up by 100, there will be an expense in the profit and loss account in the first year and a credit in the profit and loss account in the second year.
Don’t forget that this exam is no longer about obscure technical points – it is about explaining the rules in ordinary language. That’s why I always tell students never to quote standard numbers in the exam.
The exam is testing whether you would be able to explain the points to an ordinary client not to an academic.Sorry to moan on!
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